Thursday, February 24, 2011

Lowest prices since 2002 - are they crazy??? We know one home that auctioned off for 15,000 less than in 1993. And another that auctioned off for 70,000 less than in 2000. Don't fool yourselves homes in Arizona are the lowest they have been in about 20 years. And the slide continues.

WRAPUP 3-US home sales rise, price slump points to weakness | Reuters: "WASHINGTON, Feb 23 (Reuters) - Surging sales of distressedproperties pushed prices for previously owned U.S. homes to anear nine-year low in January, even as they helped to liftoverall sales to an eight-month high.The National Association of Realtors said on Wednesdayexisting homes sales climbed 2.7 percent to an annual rate of5.36 million units, marking the third straight month of gains.Economists had expected a fall to a 5.24 million-unit pace. But foreclosures and short sales, which typically occurbelow market value, accounted for 37 percent of thetransactions and suggested further price declines ahead. Themedian home price fell 3.7 percent from a year ago to $158,800,the lowest since April 2002.'What this shows is that there will be an ongoingadjustment to prices to the downside. Housing fundamentals arestill weak,' said Neil Dutta, an economist at Bank of AmericaMerrill Lynch in New York."